PXP Energy Corp., the upstream oil and gas firm led by businessman Manuel V. Pangilinan, said its subsidiary, Forum Exploration, Inc. (FEI), will issue 561 million new common shares at P1 per share. 

In a Tuesday disclosure, the company said the issuance will convert shareholder advances of approximately $10.2 million, or approximately P561 million from Forum Energy Philippines Corp. (FEPCO) into new FEI equity.

The issuance was approved by the board of directors and stockholders of FEI in a joint special meeting held on 24 March, and is subject to the completion of required documentation and regulatory filings.

According to PXP, the conversion is intended “to strengthen FEI’s balance sheet and improve its capital position by reducing outstanding obligations.” 

Upon completion, FEPCO’s ownership in FEI will increase from 66.67 percent to approximately 91.65 percent of the total issued and outstanding shares.

FEI holds a 100 percent operating interest in Service Contract No. 40 in Northern Cebu.

FEI is an indirect subsidiary of PXP through its 98.08 percent effective interest in Forum Energy Limited, which holds a 100 percent interest in FEPCO.

Last year, PXP posted a net loss of P80.4 million in 2025, hurt by declining output and lower crude prices at its aging Galoc oil field. 

Despite the weak results, the company is looking ahead with optimism, securing new exploration acreage in the Sulu Sea and northwest Palawan and signing a contract to maintain Galoc production. 

PXP said it will focus on managing liquidity, funding exploration commitments, and advancing key assets while monitoring market and financing conditions, signaling a strategy aimed at turning its fortunes around.